Invest in China Guide 2023: Actual FDI Tops CNY 1.2 Trillion as 80% of Foreign Firms Report Flat Profits

Summary

New Zealand companies including Fonterra, Zespri, Fisher & Paykel,

ZURU, Les Mills, Comvita,

Alpha Group and Silver Fern Farms span dairy, fruit, medical devices,

toys, fitness, health supplements and red meat exports. Their experiences in China form the most direct investment guide. Company | Industry | China footprint | Key figures —|—|—|— Alpha Group | Biotechnology | Technology parks in Ningde,

Fujian; Changbai Mountain, Jilin;

Anji, Zhejiang | Supported 4, 610 farming households in 2015,

purchasing 15, 000 tonnes of raw materials

Commentary

New Zealand companies have a diverse presence in China, from Fonterra's dairy products to Zespri's kiwifruit and Fisher & Paykel's medical devices, covering several high-value-added sectors. Alpha Group has established technology parks in Fujian and Jilin, directly supporting 4,610 farming households, showing that New Zealand investment in China is extending from pure trade into upstream parts of the supply chain. For New Zealand SMEs, this trend means supply chain integration and localised production could be an effective route into the Chinese market.

At the same time, actual foreign investment in China exceeded CNY 1.2 trillion, with 80 percent of foreign firms reporting flat profits, indicating intensifying market competition and challenges for models that rely solely on brand premiums. SMEs should watch for niche opportunities arising from China's consumption upgrading and rising health awareness, such as functional foods and medical equipment, while remaining alert to the rapid rise of local brands.

Keywords: New Zealand companies, investment in China, Alpha Group, Fonterra, Zespri, actual foreign investment, Invest in China, biotechnology

Source: Three Cobblers Report